Revenue: In the fourth quarter of 2012, total sales for Forbes Energy were $107.0 million, down 14.1% year over year, primarily due to shorter daylight hours and holidays. Revenue also missed the Zacks Consensus Estimate of $110.0 million by 2.7%.

Segment Details: In the reported quarter, revenue from the Well Servicing segment was recorded at $48.6 million, a decrease of 4.9% compared with the year-ago quarter. Fewer 24-hour rigs working led to the decline.

Revenue from Fluid Logistics and Other segment came in at $58.5 million, facing a decline of 20.5% year-over-year, due to a reduction in the truck hours.

Margins: Operating profit in the reported quarter dropped by a whopping 98.1% to $0.3 million from the $18.1 million reported in the year-ago quarter. This decrease was attributable to a higher insurance expense as well as higher wages and fuel charges. Operating margin in the quarter was recorded at 0.3% compared with 14.5% in the fourth quarter of 2011.

Balance Sheet/Cash Flow: Exiting the fourth quarter 2012, Forbes Energy’s cash and cash equivalents were approximately $17.6 million, compared with $5.3 million in the previous quarter. Total debt balance stood at $306.3 million against $296.1 million in the preceding quarter.

Capital expenditure in the quarter amounted to $8.7 million.

Outlook: Forbes Energy expects capital expenditure in 2013 to be roughly $20.0–$23.0 million. The company also predicts a stable pricing environment in 2013.